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Exhibition Title: 3th China(Vietnam) Chemical Industry Fair & Vietnam International Chemical Industry Fair 
Initiator: CCPIT Sub-council of Chemical Industry,Vietnam National Chemcial Corporation (Vinachem),Vietfair 
Undertaker: Vietnam Institute of Industrial Chemistry 
Date: 2006-09-08 
Exhibits: HCM CITY HIECC 
Details: Market Overview:
Vietnam has a history of heavy industry, but competitiveness has been poor due to obsolescent technology and infrastructure. The annual import market for chemicals is approximately US$ 200 million, mainly lower-quality products from producers and traders in Singapore, Korea and China; these are used as feedstock and for other industrial uses.

Domestic production is increasing, with some foreign investment. Throughout the 1990s, annual growth rates were recorded at around 20%, although the sector remains modest by comparison to neighbouring countries. Vietnamese chemical manufacturers produce a limited range of products, and in many sectors (organic, synthetic and oil products) are unable to compete with much cheaper imports. Tariffs remain high, although will be affected in the next decade by Vietnam's commitments under the ASEAN FTA.

Competition:
Major exporters of machinery and equipment to Vietnam are Japan, Korea, Taiwan, Germany. Industrial petrochemicals are supplied to a large extent by refineries in US, Singapore and the Middle East. Domestic producers-especially foreign invested-are also major competitors. Germany, Korea and Japan are major suppliers of tanning chemicals.


Local Chemical Production to Reduce Imports:
The Industry Ministry will focus on the production of 11 principle chemicals to facilitate agriculture and rural development by supplying them with fertilisers, insecticides, pesticides, detergents, rubber products, batteries, industrial gas and pharmaceuticals.

According to the programme on the ‘development of the chemical industry by 2010 for the industrialisation and modernisation of agriculture and rural areas,’ recently approved by the Industry Ministry, four new factories will be built by 2010. They new plants include: the Ca Mau urea-gas plant with an output of 800,000 tonnes of urea year; a plant in the North producing urea from coal dust with an output of 560,000 tonnes of a year; the Diamino phosphate (DAP) plant in Dinh Vu, Haiphong with a capacity of 330,000 tonnes/year; and an amone sulphate (SA) plant with a capacity of 100,000 tonnes/year.

The phosphate fertiliser sector will also expand the capacity of Lam Thao plant to 850,000 tonnes a year, Long Thanh plant to 200,000 tonnes/year and other plants to 500,000 tonnes/year.

New kinds of fertilisers will also be developed (e.g. leaf nutrients) and particular chemicals of advanced technology for food preservation, post-harvest maintenance and aquaculture will be produced in order to substitute imports.

Concerning detergents, the chemical industry will modernise its production lines before 2010 to meet the demand of the rural population at a reasonable price. 

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